1. A quick call
A personal approach will always be appreciated by your customer. You can immediately ask if the delivery or service was to your liking and if the invoice is correct. You can ask why payment was not made. Tip: take notes of phone calls!
2. Send a payment reminder
Has the invoice not been paid within the agreed term? Then you take the first formal step by sending a payment reminder (a few days after the payment term has expired). It is a friendly reminder, in which you also mention that you will charge statutory interest if payment is still not made.
3. Send a reminder
If all goes well, your general terms and conditions describe what the debt collection procedure entails. Check this carefully first. A reminder (also called a summons letter):
- refers to the delivery, the invoice, any telephone calls and the payment reminder
- Sets an ultimatum of, say, 14 days
- reports that collection costs and legal action will follow if payment is not made
Tip: send the reminder by registered mail with acknowledgement of receipt and by regular mail. Keep copies of the letters. Mailing is also possible, but sending by registered mail with acknowledgement of receipt ensures legal cover if the customer denies receipt.
4. Charge collection costs and statutory interest
Does your customer not pay the invoice or pay it late? Then you may charge collection costs and statutory interest. Collection costs are the costs you incur as a creditor to get your money if the customer does not pay the invoice by himself. Statutory interest is the interest you can claim under the law if the customer is in arrears. Tip: preferably use these options only if a friendly letter or phone call won't get you there.
5. Make payment arrangements
If the customer cannot pay, agree on a payment schedule. Put everything in writing and agree that the arrangement will expire if your customer does not pay at the agreed times. Tip: Have part of the claim paid immediately and the remaining part within 2-3 months. Are you insured? Then you do have to adhere to the transfer period of collection.
6. Transfer the claim to your insurer, collection agency, bailiff or collection lawyer
Can't get your customer to pay the outstanding invoice? Then consider using a collection agency, bailiff or collection lawyer. These are companies that collect invoices on your behalf:
- the insurer's collection department, like the collection agency, will initially try to collect a claim at an amicable stage.
- a collection agency sends letters requesting payment, but may not enforce payment.
- A bailiff can initiate legal proceedings. He can also use coercive measures, such as seizure and sale of the client's goods. For this, however, he usually needs a court order first.
- A collection lawyer can send dunning notices, draft subpoenas and file for a debtor's bankruptcy.
